Finding 1216432 (2025-006)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-03
Audit: 402942
Organization: Richland Community College (IL)
Auditor: SIKICH CPA LLC

AI Summary

  • Core Issue: The College inaccurately reported enrollment status changes for over half of the students tested, indicating a significant compliance weakness.
  • Impacted Requirements: This finding violates federal regulations requiring timely and accurate reporting of student status to the Secretary.
  • Recommended Follow-Up: The College should fix all identified errors in its financial aid system to avoid future reporting issues.

Finding Text

2025-006 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Pell Grant Program (d) Federal Direct Student Loans, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2025 Criteria: 34 CFR 690.83 (b)(2) which states the institution shall submit “in accordance with deadline dates established by the Secretary, through publication in the Federal Register, other reports and information with Secretary requires and shall comply with the procedures the Secretary finds necessary to ensure that the reports are correct.” 34 CFR 685.309(b)(1-2) which states a school shall “upon receipt of a student status confirmation report from the Secretary, complete and return that report to the Secretary within 30 days of receipt; and unless it expects to submit its next student status confirmation report to the Secretary within the next 60 days, notify the Secretary within the next 60 days, notify the Secretary with 30 days if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of student…” Condition: The College did not correctly report enrollment status changes for 21 out of 40 students tested (52.5%). We consider this condition to be a material weakness of the Special Tests and Provisions compliance requirement and is a repeated finding shown in Section IV of this report as prior year finding 2024-004. Statistical sampling was not used in making sampling selections. Questioned Costs: N/A Cause: The students were incorrectly reported due to errors in their financial aid system. Effect: The College did not timely and accurately submit enrollment status information, which has the potential to delay the start of the repayment period for students who have received loans. Recommendation: We recommend the College correct all known errors in their financial aid system to prevent further errors. View of Responsible Officials: Management agrees with this Single Audit Finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

2025-006 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Pell Grant Program (d) Federal Direct Student Loans, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2025 Criteria: 34 CFR 690.83 (b)(2) which states the institution shall submit “in accordance with deadline dates established by the Secretary, through publication in the Federal Register, other reports and information with Secretary requires and shall comply with the procedures the Secretary finds necessary to ensure that the reports are correct.” 34 CFR 685.309(b)(1-2) which states a school shall “upon receipt of a student status confirmation report from the Secretary, complete and return that report to the Secretary within 30 days of receipt; and unless it expects to submit its next student status confirmation report to the Secretary within the next 60 days, notify the Secretary within the next 60 days, notify the Secretary with 30 days if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of student…” Condition: The College did not correctly report enrollment status changes for 21 out of 40 students tested (52.5%). We consider this condition to be a material weakness of the Special Tests and Provisions compliance requirement and is a repeated finding shown in Section IV of this report as prior year finding 2024-004. Statistical sampling was not used in making sampling selections. Responsible Person: Director, Financial Aid and Veteran Affairs, Director, Admission and Registration, and Administrative Information Systems (AIS) Corrective Action Plan: The Director of Financial Aid and Veteran Affairs will work with the Director of Admissions and Registration to review and update enrollment procedures, evaluate system configuration and reporting process related to the recent transition to Jenzabar One and Jenzabar Financial Aid, and establish a secondary review process to verify enrollment status changes prior to and after submission through the National Student Clearinghouse. Periodic internal monitoring will also be conducted to ensure compliance and strengthen internal controls. Implementation Date: May 2026

Categories

Student Financial Aid Special Tests & Provisions Material Weakness Reporting

Other Findings in this Audit

  • 1216417 2025-003
    Material Weakness Repeat
  • 1216418 2025-003
    Material Weakness Repeat
  • 1216419 2025-003
    Material Weakness Repeat
  • 1216420 2025-003
    Material Weakness Repeat
  • 1216421 2025-004
    Material Weakness Repeat
  • 1216422 2025-004
    Material Weakness Repeat
  • 1216423 2025-004
    Material Weakness Repeat
  • 1216424 2025-004
    Material Weakness Repeat
  • 1216425 2025-005
    Material Weakness Repeat
  • 1216426 2025-005
    Material Weakness Repeat
  • 1216427 2025-005
    Material Weakness Repeat
  • 1216428 2025-005
    Material Weakness Repeat
  • 1216429 2025-006
    Material Weakness Repeat
  • 1216430 2025-006
    Material Weakness Repeat
  • 1216431 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $3.89M
84.268 FEDERAL DIRECT STUDENT LOANS $734,916
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $72,900
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $61,595
84.033 FEDERAL WORK-STUDY PROGRAM $42,472
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $32,236
10.902 SOIL AND WATER CONSERVATION $2,549